Planning to move to KL as I got a offer.

Hello ,

This is Ramesh, I'm planning to move to KL for 2 years on job contract. Joining there would be in August.

Now I want to know about tax deductions and other expenses like house rent for couple and advance for house, transport and other expenses.

I'm lil confused about tax deduction for first months and after that. Can some help me out by giving clear information about tax.

Thanks

Joining in August means you will be Tax Non-Resident for all of 2018 and have 28% deducted. (You will be in Malaysia for less than 182 days)

Tax year 2019 can be linked to 2018, as long as during the first 182 days of 2019 you don't tax take a holiday of over 14 days. (Business absences and medical attention outside Malaysia are not counted - only personal absence). By linking the two tax years, retrospectively 2018 will then be considered a Tax Resident period.

The Resident rates are graduated. Higher parts of the annual salary are taxed at a higher level, but everyone pays low tax on lower earnings. You can check out the steps here: https://www.pwc.com/my/en/assets/public … ooklet.pdf

Tax is always deducted each month, so any overpayment is refunded at the time of doing the annual tax return, which is in April each year.

Hi tax can depend on your tax office - mine was different to my colleaugues as I was already registered in a local tax office whereas one in Putrajaya interpreted the law differently. Malaysia boleh! Some colleaugues went on a business trip and were whacked with a 20k tax bill. Best to not leave at all IMHO. I got more back than colleaugues as well in first year on same salary and no problems ever. Again Malaysia boleh! Ask 10 Malaysian officers about a tax rule and get 11 different answers.

As for cost of living - how long is a piece of string? Do you drink? Are you vegetarian?  Kids? What sort of place you want to live in? Where do you work?

As a married man I wouldnt even consider less than 20,000 rm per month in KL. And I get free school places for kids. And thats excl alcohol, partying etc and eating at home mostly. But thats me.

Tax is always confused . Gravitas as you said I need to complete 182 days for being under less tax, do I need to complete 182 days in year 2019 . Till that time I would pay 28% tax ? If that's the case do I have to pay 30% tax August to December in 2018 and 182 days in 2019?

I have contract to work for  2 years. Office is in bangsar south complex. We are not a party guys and no kids. Me my wife can manage with 1bhk with semi-furnished.

Now please let me know where can I live if working  in  Bangsar south. What would be decent rental amount for 1 bedroom flat or and any suggestions.

KL Gateway, Vista Angkasa, Centrio Pantai Hill Park, etc.
https://www.iproperty.com.my/rent/bangs … Residences

It's flat rate non-resident deduction of 28% until you qualify as tax resident

So August-December 2018 and Jan-July 2019 actual deduction will be 28%. July-December deduction will be the progressive rates shown in the PWC publication. Any tax rebate will only come after completing annual tax return (or leaving the country permanently).

You can live on a salary under RM10k comfortably. Budget will be around RM4-5k per month all in. Check COL at Numbeo and Expatistan.